Lennox International (LII) Is Down 19.3% After Cutting 2026 EPS Guidance Amid Mixed Demand Trends – Has The Bull Case Changed?

Lennox International's stock (LII) dropped 19.3% after cutting its full-year 2026 EPS guidance to US$23.00–US$24.00, despite reaffirming an 8% revenue growth outlook. This guidance cut, driven by weaker residential demand contrasting with strong commercial performance, raises questions about the company's investment narrative. While the company continues share repurchases, investors need to assess if the residential market weakness poses a temporary setback or a more fundamental challenge to Lennox's long-term growth thesis.